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Kegley Chapter 5

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Kegley Chapter 5

  1. 1. Chapter 5: The Global South in a World of Powers<br />
  2. 2. Copyright 2010 Cengage Learning<br />Some Definitions<br />Global South: Less-developed countries<br />Global North: Wealthy industrialized countries <br />Third World: Cold War term for Global South<br />First World: Cold War term for Global North democracies<br />Second World: Cold War term for Soviet Union and other communist countries<br />Fourth World: Indigenous peoples<br />2<br />
  3. 3. Copyright 2010 Cengage Learning<br />Global South <br />3<br />85% of the <br />World’s People <br />20% of the <br />world’s wealth<br />
  4. 4. Copyright 2010 Cengage Learning<br />The Global North, Global South (and Global East)<br />4<br />
  5. 5. Copyright 2010 Cengage Learning<br />The Great North–South Divide in Wealth and Population<br />5<br />
  6. 6. Copyright 2010 Cengage Learning<br />Imperialism<br />Late 1400s: Europe used transportation and military technology to conquer colonies<br />Mercantilism: Trade should increase state wealth; increase exports, decrease imports; used to take advantage of colonies<br />1880s: Final burst colonizes most of Africa<br />China divided into spheres of influence<br />6<br />
  7. 7. Copyright 2010 Cengage Learning<br />European Control of the Globe <br />7<br />
  8. 8. Copyright 2010 Cengage Learning<br />Global Imperialism 1914<br />8<br />
  9. 9. Copyright 2010 Cengage Learning<br />Economic Explanations for Imperialism<br />Marxism–Leninism: Capitalists need overseas outlets for surplus capital<br />Liberalism: Result of maladjustments within the capitalist system <br />World-system theory: Capitalist core and dependent periphery<br />9<br />
  10. 10. Copyright 2010 Cengage Learning<br />Political Explanations for Imperialism<br />Hobson: Competition for power and prestige among European states<br />Realpolitik<br />10<br />
  11. 11. Copyright 2010 Cengage Learning<br />Imperialism Declines: 20th Century<br />Self-determination: Woodrow Wilson, Treaty of Versailles<br />League of Nations mandates<br />World War II saps strength of colonial powers, demonstrates that colonial powers can be defeated<br />Decolonization from 1947–1960s<br />Neocolonialism: Continued domination of the Global South by the Global North through economic means<br />11<br />
  12. 12. Copyright 2010 Cengage Learning<br />Global North<br />Democratic<br />Technologically inventive<br />Wealthy<br />Aging populations <br />Low population growth<br />12<br />
  13. 13. Copyright 2010 Cengage Learning<br />Global South<br />Most states:<br />Not democratic<br />Low technology use<br />Poor<br />Rapid population growth<br />Overstrained social and ecological systems<br />80 percent global population<br />15 percent global wealth<br />13<br />
  14. 14. Copyright 2010 Cengage Learning<br />Poverty <br />14<br />
  15. 15. Copyright 2010 Cengage Learning<br />How Do We Measure Poverty? <br />Per capita GDP<br />Purchasing Power Parity <br />Basic Human Needs Approach <br />Human Development Index (HDI)<br />Inequality<br />Gini Coefficient <br />Gender Development Index <br />15<br />
  16. 16. Copyright 2010 Cengage Learning<br />Gini Coefficients of Various Countries <br />16<br />
  17. 17. Copyright 2010 Cengage Learning<br />Percentage of People Living on Less Than $1 a DayUN Development Goals for 2015<br />17<br />
  18. 18. Copyright 2010 Cengage Learning<br />The Problem of Late Development<br />First Mover Advantages<br />Economies of scale <br />Network effects<br />Investment funds <br />Declining Terms of Trade <br />18<br />
  19. 19. Copyright 2010 Cengage Learning<br />Strategies for Development Today <br />Import-substitution industrialization<br />State socialism <br />Export led growth <br />19<br />
  20. 20. Copyright 2010 Cengage Learning<br />The Asian Tigers <br />South Korea, Taiwan, Singapore, and Hong Kong used export-led growth to move from the world’s poorest countries to the world’s richest in half a century<br />“Go where the money is.” <br />Low cost production based on abundant cheap labor <br />Use profits and expertise gained to move up the food chain<br />20<br />
  21. 21. Copyright 2010 Cengage Learning<br />World Bank and Foreign Aid<br />1968–1981: Focus on basic human needs approach <br />1980s and 1990s: Focus on structural adjustment<br />Recently, focus on good governance <br />21<br />
  22. 22. Copyright 2010 Cengage Learning<br />Shortcomings of International Aid <br />Goes primarily to governments<br />Multiplier effect of aid <br />Tied aid <br />22<br />
  23. 23. Copyright 2010 Cengage Learning<br />Multilateral Aid and the World Bank<br />Structure of the World Bank: <br />The U.S. has 16.4 percent of the votes, followed by Japan with 7.9 percent, Germany with 4.5 percent and France and Britain with 4.3 percent each. 163 other members have less than one percent of the vote.<br />23<br />
  24. 24. Copyright 2010 Cengage Learning<br />Some Critiques of the World Bank <br />The voting procedure disenfranchises the poor countries that have the most at stake <br />Lending may leave the recipient with debts, without much benefit<br />Conditionality undermines the sovereignty of recipient governments<br />Conditions often require harsh economic policies<br />24<br />
  25. 25. Copyright 2010 Cengage Learning<br />Bilateral Foreign Aid <br />25<br />
  26. 26. Copyright 2010 Cengage Learning<br />Modernization Theory<br />Reasons for underdevelopment are internal deficiencies<br />Global South must:<br />Create conditions for efficient production, free enterprise, and free trade<br />Attract investment capital from the Global North<br />Pass through stages of development and reach “take off”<br />Historical conditions that allowed the North to do this in the 19th century do not exist now<br />26<br />
  27. 27. Copyright 2010 Cengage Learning<br />Dependency Theory<br />Reasons for underdevelopment are external<br />Capitalist world economy is based on a division of labor between the industrialized core and underdeveloped periphery <br />Global North keeps Global South poor through:<br />Terms of trade and finance<br />Exploitation by multinational corporations<br />Dualism—rural impoverished sector and urban modernizing sector<br />Has trouble explaining the NICs<br />27<br />
  28. 28. Copyright 2010 Cengage Learning<br />The Global South’s Search for Power<br />Nonaligned Movement<br />Failed states<br />External military intervention<br />Arms acquisitions<br />Preparing for natural disasters<br />28<br />
  29. 29. Copyright 2010 Cengage Learning<br />The Global South’s Search for Prosperity (1 of 3)<br />Import-substitution industrialization<br />Export-led industrialization<br />New International Economic Order (1974)<br />Pushed by Group of 77<br />Called for changes in the international economic system that would benefit development in the Global South and redistribute some global wealth to it<br />Most were rejected by the Global North<br />29<br />
  30. 30. Copyright 2010 Cengage Learning<br />The Global South’s Search for Prosperity (2 of 3)<br />Regional trade regimes:<br />NAFTA: North American Free Trade Agreement<br />Mercosur: Argentina, Brazil, Paraguay, Uruguay<br />APEC: Asia-Pacific Economic Cooperation<br />ASEAN: Association of Southeast Asian Nations<br />SADC: Southern African Development Community<br />30<br />
  31. 31. Copyright 2010 Cengage Learning<br />The Global South’s Search for Prosperity (3 of 3)<br />Trade, Aid, Investment, Debt Relief<br />Bilateral aid: official development assistance <br />Multilateral aid: World Bank<br />Conditionality <br />Foreign direct investment (FDI)<br />Multinational corporations (MNCs)<br />Heavily indebted poor countries (HIPCs)<br />31<br />
  32. 32. Copyright 2010 Cengage Learning<br />The Washington Consensus <br />Free market approach is optimal <br />Other approaches: <br />Developmental state<br />The Post-Communist Experience <br />Emerging Consensus: <br />Embraces both the developmental state and the free market <br />32<br />
  33. 33. Copyright 2010 Cengage Learning<br />Two Rankings of Global North Countries’ Aid to the Global South<br />33<br />
  34. 34. Copyright 2010 Cengage Learning<br />Trends in Capital Investments in the Global South<br />34<br />

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